PMI-RMP - PMI Risk Management Professional Opportunity Response Strategies Questions and Answers 1 — Questions and Answers
Question 1: A project team discovers that a new software algorithm could significantly improve the final product's performance, a key project objective. To guarantee this benefit is realized, the project manager allocates top talent and additional funding to integrate the algorithm, making its successful implementation a primary focus. Which opportunity response strategy is the project manager using?
- Enhance
- Accept
- Share
- Exploit (Correct answer)
Correct answer: Exploit
The 'Exploit' strategy is used to ensure that an opportunity is fully realized. By dedicating top resources and funding, the project manager is taking aggressive and decisive action to make the opportunity's probability 100%, which is the core of the Exploit strategy. 'Enhance' only seeks to increase the probability or impact, not guarantee it. 'Accept' involves no proactive action, and 'Share' would involve a third party.
Question 2: A construction project identifies an opportunity to generate significant positive press by partnering with a local non-profit to build a community park on an adjacent, unused parcel of land owned by the client. The project team lacks expertise in park design and community engagement. They form a joint venture with the non-profit, agreeing to provide construction resources in exchange for the non-profit managing the design, public relations, and long-term maintenance. What opportunity response strategy does this joint venture represent?
- Share (Correct answer)
- Exploit
- Escalate
- Accept
Correct answer: Share
The 'Share' strategy involves allocating ownership of an opportunity to a third party who is best able to capture the benefit for the project. In this scenario, the project team partners with a non-profit that has the specific expertise needed, and they share in the benefits (positive press for the project, a new park for the community). This is a classic example of forming a partnership or joint venture to capitalize on an opportunity.
Question 3: During a technology upgrade project, the team identifies an opportunity: if the new server hardware is ordered from a specific vendor within the next month, they might receive a next-generation model at no extra cost due to an anticipated product line refresh. The project manager directs the procurement team to fast-track the vendor qualification and purchasing process to meet this deadline. This action is BEST described as which opportunity response strategy?
- Accept
- Enhance (Correct answer)
- Exploit
- Escalate
Correct answer: Enhance
The 'Enhance' strategy focuses on increasing the probability and/or positive impacts of an opportunity. By fast-tracking the procurement process, the project manager is increasing the likelihood of securing the upgraded hardware but cannot guarantee it (the vendor might change their plans). This distinguishes it from 'Exploit,' which would aim to make the outcome 100% certain. 'Accept' would mean taking no action, and 'Escalate' is for opportunities outside the project's scope.
Question 4: A project manager is running a project to develop a new mobile application. An opportunity is identified where a new, unproven programming language could potentially reduce development time by 15%. However, the team lacks expertise, and the potential benefits are not significant enough to warrant dedicated training or hiring. The team decides to take no proactive steps but documents the opportunity in the risk register to be revisited if other schedule delays occur. This is an example of which opportunity response strategy?
- Exploit
- Enhance
- Share
- Accept (Correct answer)
Correct answer: Accept
The 'Accept' strategy acknowledges the existence of an opportunity but involves a decision not to take any proactive action. This can be a valid choice when the potential benefits do not justify the cost or effort of a more aggressive response. By documenting the opportunity for future consideration, the team is performing passive or active acceptance, but not actively pursuing it like in Enhance or Exploit strategies.
Question 5: While executing a project to consolidate two corporate data centers, the project team discovers that the combined infrastructure could support a new, high-demand cloud service offering for the company's clients. This opportunity represents a significant new revenue stream but falls far outside the project's charter, budget, and the project manager's authority. Which of the following is the MOST appropriate response?
- Escalate the opportunity to senior management or the portfolio review board. (Correct answer)
- Use the Exploit strategy to redirect project funds and pursue the new service.
- Actively Accept the opportunity by creating a contingency plan for its development.
- Use the Share strategy by finding an external partner to develop the service.
Correct answer: Escalate the opportunity to senior management or the portfolio review board.
The 'Escalate' strategy is used when an opportunity is outside the scope of the project or exceeds the project manager's authority. The correct course of action is to communicate the opportunity to the appropriate level of management (e.g., program manager, portfolio manager, or sponsor) who has the authority to authorize a new project or initiative to pursue it.
Question 6: Which statement accurately distinguishes between the 'Exploit' and 'Enhance' opportunity response strategies?
- Exploit involves a third party, while Enhance is handled internally.
- Exploit is a passive strategy, while Enhance is an active strategy.
- Exploit seeks to increase the probability of an opportunity, while Enhance seeks to increase its impact.
- Exploit aims to make the opportunity's probability 100%, while Enhance aims to increase its probability or impact without guaranteeing it. (Correct answer)
Correct answer: Exploit aims to make the opportunity's probability 100%, while Enhance aims to increase its probability or impact without guaranteeing it.
The primary distinction between Exploit and Enhance lies in the level of certainty sought. The Exploit strategy takes direct action to ensure the opportunity is realized, effectively increasing its probability to 100%. The Enhance strategy works to increase the probability and/or impact of the opportunity but does not guarantee its occurrence. For example, adding more resources to finish early and get a bonus is exploiting; adding a more skilled resource to increase the chances of finishing early is enhancing.
PMI-RMP - PMI Risk Management Professional Opportunity Response Strategies Questions and Answers 1
A project team discovers that a new software algorithm could significantly improve the final product's performance, a key project objective.
To guarantee this benefit is realized, the project manager allocates top talent and additional funding to integrate the algorithm, making its successful implementation a primary focus.
Which opportunity response strategy is the project manager using?